The Federal Government has authorized petroleum marketers to source petrol directly from the Dangote refinery, bypassing the Nigerian National Petroleum Company Limited (NNPC). This move confirms the expectation that NNPC will no longer be the exclusive off-taker of Dangote fuel.
In a statement released on Friday, Wale Edun, the Minister of Finance and Chairman of the Naira-crude sale implementation committee, provided an update on the initiation of crude purchase and product sales in naira transactions.
The Implementation Committee, chaired by Edun, held its second post-commencement review meeting on October 10 to assess the progress of the Crude Oil and Refined Products Sales in naira initiative.
“The committee is pleased to report a successful transition of operations in line with the directive issued by the Federal Executive Council. This directive has established a robust framework for the local production and distribution of crude oil and refined products for local consumption in naira.
“With this mechanism now fully operational, alongside the commencement of local production, we are well-positioned to transition to a fully deregulated market for all petroleum products.
“Moving forward, petroleum product marketers are now able to purchase PMS directly from local refineries without the intermediary role of NNPC. Marketers are encouraged to initiate direct purchases from refineries on mutually negotiated commercial terms, promoting competition and improving market efficiency,” the statement read. Edun expressed confidence that these measures will ultimately create better market conditions for the benefit of all Nigerians.
